Gartman: Any Stock Rally Won't Last Long

Don’t get too comfortable even if U.S. stocks stage a healthy rally after last week’s plunge, warns Dennis Gartman of “The Gartman Letter.”

He cautions that any bounce in U.S. stocks will be short-lived. He is worried about the decline in money supply as measured by the St. Louis Fed's adjusted monetary base.

"That's the real money supply. As I like to say, that's the stock from which the other soups of monetary aggregates are derived, and it has plummeted," he told CNBC.

The biweekly reading of the adjusted monetary base showed it fell from $4.1 trillion in mid-October to $3.6 trillion just under two weeks ago, CNBC reported.

“Gartman acknowledged that the shortfall could be the result of the Federal Reserve adjusting the securities it holds in its portfolio, but he said that doesn't change the fact that the money supply is falling,” CNBC reported.

“The slowdown in China is nowhere near as bad as markets feared, plus officials have the ability to intervene and stimulate growth,” said Justin Urquhart Stewart, London-based co-founder of Seven Investment Management, which oversees about $13 billion of assets. “It looks like the hangover from this awful start to the year is finally clearing.”